Hedge fund Yorkville spies gap in loans market

Reuters – Yorkville Advisors, a $1 billion hedge fund, said it is stepping into the lending vacuum left by banks as it provides struggling firms with loans for up to two years, typically in the $5 million to $40 million range.

More recently the value of the loans has increased as larger-cap companies seek assistance. At end-January, Yorkville loaned $147.9 million to shipping firm Ocean Freight Inc.

The move is one way for hedge funds to thrive despite the global financial and economic crisis, and mirrors similar investments by billionaire investor Warren Buffett.